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properties, as well as small developments,
with the larger blocks lending themselves
perfectly to subdivision.
While these two options are the major
ones for property investors, there’s also
the potential to buy new properties in
Nudgee, as there are some new housing
estates that have been developed.
Solano says which way an investor
decides to go will depend on the
individual’s investment strategy.
“Entry-level developers are buying up
splitters or double blocks, which could
be a good opportunity for investors with
development on their mind, or I would
suggest investors look for renovators on
good sized land,” he says.
But he warns investors to steer clear of
some parts of the suburb, with some areas
subject to flooding.
The best way to ensure you don’t buy in
these areas is to check out the Brisbane
City Council’s flood maps.
“Also avoid the large cemetery, which
often deters buyers and renters,” Solano
says. “Streets between the Nudgee Train
Station and St Vincents Road are popular.”
Collins notes that values in neighbouring
Nudgee Beach are higher than in Nudgee
proper, but any buyer or renter in this area
will tend to have a boating and fishing
affinity, and he says better returns are
available in Nudgee.
“A residential investor return for Nudgee
housing would be around six per cent
after expenses, but could be improved
with astute purchasing and intelligent
refurbishment or renovation,” he says.
Collins adds that Nudgee is a “very
affordable suburb”, with the median price
currently in the mid $400,000s.
“Any investors buying either side of
the $455,000 market would receive an
acceptable return,” he says.
Yield expectations vary significantly
in Nudgee; while Collins says the yield
would be around six per cent, Solano
estimates yields would be closer to the
high four per cent/low five per cent range
and Sullivan says they can range right up
to eight per cent.
As Solano notes, yields can depend on
several factors, and as such investors
must look into each individual property to
determine what their return will be.
At the moment, around 21 per cent of
properties in Nudgee are rented, less than
the 33 per cent average for Queensland.
The area is predominantly owner-
occupied due to its affordability, but there
is certainly a wide range of potential
tenants in the area. This is due to its
proximity to the Brisbane Airport, which
is accessed by plenty of fly in/fly out
workers who are employed in mining
areas; sources of employment such as
the Gold Circle Cannery and railway
workshops; and proximity to the ACU,
which would lead students to look at
renting close by.
While affordability is a key part of
Nudgee’s property market, Sullivan notes
that prices have firmed up in recent times,
and buyers would be lucky to secure a
property for less than $400,000.
He says he has been selling properties in
the area for right up in the high $700,000s.
“Depending on where they’re situated
they can command higher prices – there
are some nice spots in Nudgee with city
views and there are some really nice
homes,” Sullivan says.
¿ CAPITAL GROWTH – PAST AND FUTURE
Property values in Nudgee grew by
154 per cent between 2001 and 2013,
according to Collins, and he anticipates
capital growth will continue to be strong
in the suburb going forward.
“This long-term growth equates to a
massive average of 12.8 per cent per year
and I see no reason why this spectacular
growth shouldn’t continue,” he says.
Collins says all the fundamentals line up
in Nudgee, including the convenience of
the suburb, with all its nearby services
and amenities, as well as transport
options, its proximity to the Brisbane
Airport, the university campus and
industrial employment – and of course its
current level of affordability.
While Wilson acknowledges that Nudgee
hasn’t performed to the expectations
he held for it over the past year, he has
confidence in the area’s future growth
potential. “Nudgee is part of the northern
band of suburbs in Brisbane, the mid-
range northern band, that hasn’t quite
lifted as I expected it would.”
Buying with foresight
When Jodie and her husband David (not
their real names) decided to buy a house
in Nudgee, it was a trade-off between
being close to the city and having less land
or being a bit further out of the city on a
The bigger block won out, with the couple
purchasing a three-bedroom, one-bathroom
house on 800 square metres in Nudgee in
June 2010 in the low $400,000s.
“The property we bought has much more
opportunity for development, and we
bought with the long-term plan of building
a larger house on the block and having
room for kids and our dog to run around,”
Jodie and David’s house is technically in
Nudgee but borders Banyo, and Jodie has
noticed plenty of gentrification going on in
“Three houses have sold in our street
in the last six months – two are having
significant renovations done and one
was bulldozed with a new architect build
currently under way,” she says.
“In addition to this there have been a
number of houses in neighbouring streets
having external ‘facelifts’ – new fences,
façade paint jobs etc.”
While Jodie doesn’t believe the property
has grown in value yet, she’s confident in its
future growth potential.
“We haven’t had it valued but I don’t
actually think it has increased in value,
despite the fact that we have done
Names: Jodie and David
Strategy: Buy and hold
extensive internal renovations. We bought
at the peak of the market boom, pretty
much for land value and I don’t think it has
quite recovered yet.
“I don’t think our house has decreased in
value, but it’s probably sitting around what
we bought it for.
“However, when we bought in Nudgee
we knew that being relatively close to the
city, public transport and major arterials, it
was only a matter of time before this area
became the next new thing.
“As housing in the CBD and surrounds
becomes more and more unaffordable
families will look to surrounding suburbs for
In addition to Nudgee being affordable
and close to the city and transport options,
Jodie says it’s also close to good schools,
relatively quiet and has good breezes from
nearby Moreton Bay, which is a huge bonus
One of the only drawbacks of the area, she
says, is that there isn’t a great deal in terms
of good infrastructure in the suburb, such as
shops and cafés.
“There are some but they’re a bit old and
daggy – that’s probably what’s keeping
house prices affordable, but it’s also
keeping the young ‘trendies’ out of the
area,” Jodie says.
THE STATES // QLD
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